New changes will impact New Brunswick businesses that sell insurance products secondary to their main business.
Those businesses must now receive a Restricted Insurance Representative licence from the province’s Financial and Consumer Services Commission (FCNB).
The licence requires that those who engage in incidental selling of insurance are knowledgeable and accountable and that consumers are provided sufficient information to make an informed decision.
“These updates add a layer of consumer protection by ensuring that the businesses involved in the sale and servicing of insurance products are properly vetted,” said Robert Picard, FCNB’s acting director of insurance.
The changes are part of a modernization to the province’s Insurance Act — the first significant update in nearly 30 years.
Any business that sells incidental insurance will have to apply for a licence, such as banks, car dealerships, credit unions and mortgage brokers.
Insurance agencies, managing general agents, and adjusting firms must apply by April 1, while those seeking to obtain a Restricted Insurance Representative licence have until May 1 to apply.
“New Brunswickers should be aware of the new licensing requirements and ensure they are working with a licensed insurance professional,” said Picard.
According to FCNB, New Brunswick is the first province east of Manitoba to introduce such a licensing framework for businesses.
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